Despite economic headwinds, the desire to travel remains remarkably resilient. Today’s travelers aren’t just booking trips, they’re seeking personalized, transformative experiences that leverage the latest technology while maintaining that essential human connection.
This shift to digital-first journeys, powered by AI and shaped by individual preferences, is more than a trend, it’s a fundamental change in how people explore the world. For the hospitality sector, this creates both opportunities and challenges.
Against this backdrop of shifting demands and heightened expectations, the economic realities of 2025 add another layer of complexity. While inflationary pressures have constrained disposable incomes, the enduring desire to travel remains a powerful force.
For the hospitality sector, the challenge lies in understanding how these financial pressures intersect with consumers’ evolving priorities, and using that insight to craft strategies that resonate in a competitive, value-conscious market.
Success in 2025 will hinge on how well hoteliers can:
- Balance innovation with authentic hospitality
- Deliver value in an increasingly price-conscious market
- Create experiences that resonate with digital natives
- Adapt to evolving financial realities while meeting higher expectations
1. Consumer caution continues into 2025, but the desire to travel remains
As outlined in our analysis of 2024 trends, the past year marked a stabilization in global hotel pricing and a more measured approach to discretionary spending by travelers.
The data tells an encouraging story for 2025. We’re seeing projected declines in inflation across major markets, coupled with expected growth in real wages. In 2025, inflation is projected to decline further, offering a slight boost to real wage growth in key markets.
While this improvement may be modest, it has the potential to ease financial pressures of many travelers, which, when coupled with the broader sentiment of prioritizing the experience economy, paints a cautiously optimistic picture for the year ahead.
According to a survey by Skyscanner, 43% of their global sample said that they intend to travel more in 2025, while only 9% anticipate scaling back their plans.
Similarly, 37% of respondents plan to spend more on flights, and 31% intend to increase their spending on hotels compared to 2024. These findings indicate a rebound in confidence, even as travelers remain value-driven.
The value-conscious mindset of travelers will continue to shape the industry in 2025, driving trends that reflect a nuanced blend of priorities.
Many travelers, drawn to authenticity and novelty, are seeking out emerging destinations that offer compelling value propositions and unique experiences – away from the crowds and the costs of traditional hotspots. Social media continues to amplify this shift, serving as both inspiration and guide for those seeking to venture into lesser-known locales.
Simultaneously, package holidays and all-inclusive resorts are seeing a resurgence, particularly among younger Gen Z travelers, who value affordability and convenience. Expedia’s 2025 trends report noted a 60% year-on-year increase in searches on Hotels.com using the ‘all-inclusive’ filter, with 42% of Gen Z travelers favoring such options.
What’s changed isn’t the desire to travel—it’s how people approach it. Today’s travelers are more strategic, seeking maximum value without compromising on experience. This shift presents an opportunity for hospitality providers who can deliver compelling value propositions.
Business travel is also poised for continued growth, with the GBTA forecasting a 10.4% increase in overall spending. This momentum is expected to push global traveler numbers beyond 2019 levels and place spending comfortably above pre-pandemic benchmarks in both nominal and real terms.
About Lighthouse
Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways. Trusted by over 70,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners—their success is our success. For more information about Lighthouse, please visit: https://www.mylighthouse.com.
